Changes in 2012 IRS parking and transit pre-tax limits

For tax year 2012, the Internal Revenue Service has increased the monthly pre-tax limit for qualified parking expenses from $230 to $240 per month.

However, the temporary increase to $230 per month for qualified transit passes and vanpooling expenses enacted by the American Recovery and Reinvestment Act of 2009 will expire, so the limit for these expenses will revert to $125 per month for 2012.

Any amount elected above these limits – $240 for parking and $125 for transit – will be deducted post-tax from your monthly paycheck.